Clara Pensions Small Schemes Offering transaction

Commenting on the transaction announced by Clara Pensions and what this means for the market, Richard Wellard, Head of Alternative Risk Transfer Solutions, Hymans Robertson, said:

“This transaction is another important milestone in the evolution of the superfund market. While Clara’s new small schemes section was designed to bring together several smaller schemes, this is the first time a second scheme has joined an existing section, demonstrating that the model can work in practice and giving trustees greater confidence in the process. For schemes that may previously have viewed consolidation as out of reach, it provides compelling evidence that innovative structures can make these endgame solutions commercially viable for a wider range of schemes.”

“From a trustee and sponsor perspective, transactions like this can help reduce governance demands, costs and long-term pension risk, while improving the security of members’ benefits through access to Clara’s capital-backed bridge-to-buyout model. Just as importantly, greater consolidation creates the scale needed to deliver efficiencies that would be difficult for smaller standalone schemes to achieve on their own. As the market continues to develop, we expect more smaller schemes to explore this route as a practical endgame option that can enhance member outcomes while helping sponsors move closer to resolving their pension obligations.”

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